When everything was going smoothly and it seemed that Indians might finally have 3G service, Central Vigilance Commission’s (CVC) has come in the way by demanding a change in the 3G policy. The CVC is demanding for a change because they claim the current 3G policy is biased towards Indian private players and foreign operators or new entrants won’t stand a chance to win the auctions.
A company interested in bidding must acquire Universal Access Service Licence (UASL) that costs Rs. 1,651 crore and if the company wins the 3G spectrum, they’ll need a mandatory 2G spectrum to start 3G services, which they can buy from the market at a very high price or wait in the line of 343 applicants for 2G airwaves.
Foreign telcos say this problem can be solved by either bundling the required 2G spectrum with the UASL or allow them to bid for two 3G slots, which the telecom ministry seems least interested in.
The notice inviting applications were sent out last week while the auction date is set for April 9, which could be further delayed if the policy is changed.
[Via ET, Thanks Mayank!]
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